SME value “grossly underestimated” says London Business School

SMEs make up 99% of UK businesses and provide 60% of private sector jobs – but they are too often ignored by policy makers, according to the associate Dean of the London Business School.

Writing in Forbes, Sabine Vinck described SME leaders as “general managers par excellence”, handling an extremely complex role that covers strategy, cash flow, product development and managing client relationships on a daily basis. This complexity and the business needs that come with it are insufficiently understood by government, she suggested, and more consultation with business owners would help to improve provisions for SMEs.

“If the UK is serious about developing policies to support SMEs, these are the people to help us do it,” she said.

Vinck also recommended that the government focus on mentoring opportunities, take steps to enlighten SMEs on how existing schemes and initiatives fit together and can be of service to them, and look at introducing more SME-focussed modules in educational institutions that offer business courses.

She added: “It’s time that these businesses, which are such an important engine for economic growth and poverty reduction in the UK, command our full attention and some creative thinking about the best way to boost them.”